2 Ultimate Growth Stocks to Buy With $1,000 Right Now
Monday, Nov 11, 2024 8:26 pm ET
2min read In today's rapidly evolving investment landscape, it's essential to identify growth stocks that offer a balance between potential returns and risk. While artificial intelligence (AI) has garnered significant attention, focusing on sectors that generate stable profits and cash flows, such as utilities, renewable energy, and the REIT sector, can provide a more reliable income stream. This article highlights two ultimate growth stocks that align with an income-focused strategy, perfect for investors with $1,000 to allocate.
1. Advanced Micro Devices (AMD)
Advanced Micro Devices, a semiconductor giant, has demonstrated remarkable resilience and growth potential despite recent headwinds. The company's data center segment posted a 122% year-over-year jump in revenues, driven by robust enterprise and cloud demand for its EPYC CPUs. This strong performance is a testament to AMD's ability to adapt to changing market conditions and maintain its technological edge.
AMD's AI accelerator business, though facing investor concerns, is set to grow rapidly with healthy adoption of its MI300X accelerators. The company is working to accelerate the pace of launch for next-generation AI accelerators, with the MI325X and MI350 series scheduled for launch in 2025 and 2026, respectively. These developments position AMD well for future growth in the AI market.
Moreover, AMD's client segment also saw robust growth, with revenues jumping 29% year over year in the third quarter. The launch of the Ryzen 9000 series processors pushed up sales of the company's desktop channel, while the emergence of new AI PCs further boosts demand for AMD's client processors. Considering these tailwinds and the recent correction in share prices, AMD seems a smart pick for investors with $1,000 to allocate.
2. Microsoft (MSFT)
Microsoft, a technology titan, remains an attractive pick for the astute investor despite recent headwinds. The company's Azure cloud computing service accounted for 20% of the worldwide cloud infrastructure market in the third quarter of 2024, with AI services contributing to roughly 12 percentage points of this growth. This strong performance demonstrates Microsoft's ability to capitalize on the growing demand for cloud services and AI technologies.
Microsoft's Azure cloud computing revenues soared by a healthy 33% year over year in the third quarter of 2024, with AI services contributing significantly to this growth. The company has introduced new Cobalt 100 virtual machines (VMs) that help power general workloads at enterprises with up to 50% better price performance. Additionally, Azure is the first cloud provider to implement Nvidia's Blackwell system with its GB200-powered AI servers, further solidifying its position in the AI market.
Furthermore, Azure has witnessed an increase in the total number of $10 million-plus and $100 million-plus contracts, indicating that customers are entering into long-term commitments with Azure. This ensures higher revenue visibility for Microsoft and positions the company for sustained growth.
In conclusion, both Advanced Micro Devices (AMD) and Microsoft (MSFT) offer compelling growth prospects within their respective sectors. AMD's strong performance in the data center GPU segment and client segment, along with Microsoft's leading position in the cloud computing market and strong AI services growth, make them attractive investment options for those with $1,000 to allocate. By focusing on these income-focused growth stocks, investors can secure steady returns while mitigating risks associated with more speculative ventures like AI.
1. Advanced Micro Devices (AMD)
Advanced Micro Devices, a semiconductor giant, has demonstrated remarkable resilience and growth potential despite recent headwinds. The company's data center segment posted a 122% year-over-year jump in revenues, driven by robust enterprise and cloud demand for its EPYC CPUs. This strong performance is a testament to AMD's ability to adapt to changing market conditions and maintain its technological edge.
AMD's AI accelerator business, though facing investor concerns, is set to grow rapidly with healthy adoption of its MI300X accelerators. The company is working to accelerate the pace of launch for next-generation AI accelerators, with the MI325X and MI350 series scheduled for launch in 2025 and 2026, respectively. These developments position AMD well for future growth in the AI market.
Moreover, AMD's client segment also saw robust growth, with revenues jumping 29% year over year in the third quarter. The launch of the Ryzen 9000 series processors pushed up sales of the company's desktop channel, while the emergence of new AI PCs further boosts demand for AMD's client processors. Considering these tailwinds and the recent correction in share prices, AMD seems a smart pick for investors with $1,000 to allocate.
2. Microsoft (MSFT)
Microsoft, a technology titan, remains an attractive pick for the astute investor despite recent headwinds. The company's Azure cloud computing service accounted for 20% of the worldwide cloud infrastructure market in the third quarter of 2024, with AI services contributing to roughly 12 percentage points of this growth. This strong performance demonstrates Microsoft's ability to capitalize on the growing demand for cloud services and AI technologies.
Microsoft's Azure cloud computing revenues soared by a healthy 33% year over year in the third quarter of 2024, with AI services contributing significantly to this growth. The company has introduced new Cobalt 100 virtual machines (VMs) that help power general workloads at enterprises with up to 50% better price performance. Additionally, Azure is the first cloud provider to implement Nvidia's Blackwell system with its GB200-powered AI servers, further solidifying its position in the AI market.
Furthermore, Azure has witnessed an increase in the total number of $10 million-plus and $100 million-plus contracts, indicating that customers are entering into long-term commitments with Azure. This ensures higher revenue visibility for Microsoft and positions the company for sustained growth.
In conclusion, both Advanced Micro Devices (AMD) and Microsoft (MSFT) offer compelling growth prospects within their respective sectors. AMD's strong performance in the data center GPU segment and client segment, along with Microsoft's leading position in the cloud computing market and strong AI services growth, make them attractive investment options for those with $1,000 to allocate. By focusing on these income-focused growth stocks, investors can secure steady returns while mitigating risks associated with more speculative ventures like AI.
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